New Delhi, 2 June (IANS). The report released by SBI on Monday stated that the Reserve Bank of India (RBI) may cut the repo rate in June MPC to reduce the repo rate by up to 50 basis points to balance the uncertain atmosphere.
SBI’s Group Chief Economic Advisor Dr. Soumya Kanti Ghosh said that the bicycle may cumually cut interest rates of 100 basis points.
He further said that the concerns of domestic liquidity and financial stability have reduced. Inflation is expected to remain in the border set by the RBI. Keeping the pace of domestic development should be the main policy focus.
The SBI report said that from February 2025, FD rates have decreased by 30-70 bps. It is expected to have an impact in deposit rates in the coming quarters.
India’s economy increased at a rate of 7.4 percent in the fourth quarter of FY 25. This figure is 8.4 percent in the same quarter of the previous financial year.
The report reported, “The inflation is estimated to be close to 3.5 percent in FY2 26 due to good arrival of monsoon and crop and fall in crude oil prices.”
The SBI report said, “We estimate that RBI can cut the repo rate by cutting a 50 basis points to support the growth rate.”
The RBI MPC meeting will start from June 4 to review the interest rates and its decision will be announced on 6 June by the RBI Governor.
At the same time, the report of Bank of Baroda says that the repo rate in the upcoming RBI MPC can be cut by 25 basis points.
According to Madan Sabnavis, the chief economist of the Bank of Baroda, “Inflation remains stable and the status of liquidity through various measures of RBI remains comfortable. With this we believe that MPC will cut the repo rate on June 6.”
-IANS
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